香港交易及結算所有限公司及香港聯合交易所有限公司對本公布的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公布全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 LANGHAM HOSPITALITY INVESTMENTS 朗廷酒店投資 （根據香港法例按日期為二零一三年五月八日之信託契約組成， 其託管人為朗廷酒店管理人有限公司） 與 朗廷酒店投資有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1270） 2024 年中期業績公布 朗廷酒店管理人有限公司（作為朗廷酒店投資（「本信託」）的託管人－經理（「託管人 －經理」））及朗廷酒店投資有限公司（「本公司」）之董事會（「董事會」）欣然宣布， 本信託及本公司連同本公司之附屬公司（「信託集團」）截至 2024 年 6 月 30 日止六個月 未經審核之綜合業績如下： 財務摘要 （除另有指明外，以百萬港元為單位） 2024 年上半年 2023 年上半年 變幅 酒店組合收入 772.9 720.9 7.2% 扣除服務費後的信託集團總租金收益 191.1 235.8 -19.0% 股份合訂單位持有人應佔溢利（撇除投 ...

Financial Performance - Fixed rental income remained stable at HKD 225.0 million, while variable rental income increased significantly by 147.5% to HKD 368.5 million, contributing to a total rental income growth of 54.8% to HKD 514.0 million[11]. - Net property income rose by 57.7% to HKD 494.7 million, driven by increased rental revenues and improved operational efficiency[13]. - The fair value of investment properties increased dramatically by 324.1% to HKD 926.3 million, reflecting strong market demand and property appreciation[15]. - The company reported a pre-tax profit of HKD 1,099.8 million, a substantial increase of 138.5% compared to the previous year[15]. - The net profit after tax for 2023 was HKD 1,080.3 million, significantly driven by an increase in the fair value of investment properties (hotel portfolio) by HKD 926.3 million, offset by a decrease of HKD 70.1 million from derivative financial instruments and financing costs of HKD 247.1 million[26]. - The total distributable income for the year ended December 31, 2023, was HKD 297.6 million, representing a year-on-year growth of 56.2%[28]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, rose to HKD 224.1 million, an 89.8% increase from HKD 118.1 million[68]. - The company recorded a net profit of HKD 224.1 million in 2023, representing a year-on-year increase of 89.8%[97]. - The profit attributable to unit holders increased by 157.5% to HKD 1,080.3 million in 2023 compared to HKD 419.6 million in 2022[89]. - Total revenue for 2023 grew by 87.7% to HKD 1,618.8 million, with significant increases in room revenue (61.6%) and food and beverage revenue (86.2%) across the hotels[90][91]. Revenue Sources - Total revenue from hotel dining increased by 76.8% to HKD 654.8 million, with banquet services showing a remarkable growth of over 500%[19]. - Hotel portfolio revenue increased to HKD 1,618.8 million, a 66.8% rise from HKD 970.6 million in 2022[68]. - Total rental income after service fees for the trust group reached HKD 514.0 million, up 54.8% from HKD 332.1 million[68]. - Total revenue for the hotel portfolio increased by 66.8% compared to 2022, driven by improvements in RevPAR and dining business[69]. Operational Metrics - The average daily available rooms remained stable at 1,630, with an occupancy rate increase to 88.1%, up 21.7 percentage points from the previous year[18]. - Average room rates increased by 21.9% to HKD 1,650, while average revenue per available room surged by 61.7% to HKD 1,454[18]. - The occupancy rate of the Hong Kong Eaton Hotel increased from 73.4% in 2022 to 87.0% in 2023, with the average room rate rising by 21.8% to HKD 1,110 per night, leading to a 44.4% year-on-year increase in average revenue per available room[32]. - The hotel portfolio recorded an average revenue per available room (RevPAR) growth of 61.7% year-on-year in 2023[69]. Financing and Costs - The company’s financing costs rose by 70.3% to HKD 247.1 million, influenced by increased borrowing and interest rates[15]. - The average interest rate on bank borrowings increased to 5.0% in 2023, up from 2.0% in 2022, leading to a 70.3% rise in financing costs to HKD 247.1 million[69]. - Financing costs increased by 70.3% to HKD 247.1 million, primarily due to a 142.1% rise in bank loan interest expenses[96]. - The debt ratio improved to 38.3% at the end of 2023, down from 42.0% at the end of 2022, following a reduction in outstanding bank loans by HKD 257.9 million[93]. Corporate Governance and Management - The board of directors emphasizes good corporate governance practices as key to long-term success in a changing business environment[133]. - The trust group has completed a review of its distribution policy, retaining full discretion to update or modify it as necessary[123]. - The independent assessment of directors' independence is crucial for objective judgment in overseeing the trust and company operations[107]. - The trust group has established a risk management framework to identify, analyze, assess, and report significant risks across various operational areas[147]. - The company has established governance measures to address potential conflicts of interest between the trust group and Eagle Group, ensuring independent operations[186]. Market and Economic Conditions - The number of visitors to Hong Kong reached approximately 34.0 million in 2023, a significant increase from 0.6 million in 2022, indicating a strong recovery in tourism[21]. - Despite the recovery in tourism, the overall economic environment in Hong Kong remains challenging, with retail and tourism sectors recovering slower than expected[140]. - The trust group has adopted proactive asset management strategies to mitigate risks, including regular performance reviews and meetings with hotel management[140]. Future Outlook and Strategies - The company plans to monitor interest rate trends closely and may convert some floating-rate bank debt to fixed rates when appropriate[72]. - The trust group is committed to enhancing shareholder value through its distribution policy, which is subject to the trust deed's provisions[121]. - The trust group is committed to developing various sustainability strategies to address climate change risks, which include rising sea levels and extreme weather events[151]. - The trust group has obtained additional revolving bank credit to address any unforeseen renovation projects[156]. Employee and Operational Structure - The trust group increased its employee count by 112 compared to December 31, 2022, reaching a total of 75% male and 25% female employees[128]. - The trust group employs four professionals to maintain operations effectively, with administrative support provided by Eagle Group on a cost-sharing basis[129]. Shareholder Information - As of December 31, 2023, the total number of issued units was 3,318,869,006, with 45,385,927 new units issued during the year, representing 1.37% of the total[164]. - The company holds a total of 2,330,678,928 shares, with major shareholders including Dr. Lo Ka Shui, who has a personal interest of 64,912,835 shares (8.68%) and a company interest of 95,948,364 shares (12.83%) [174]. - The company has a total of 4,166,747,905 fund units, with Dr. Lo Ka Shui holding 69.29% of the issued fund units [180].

Financial Performance - Hotel portfolio revenue increased by 66.7% to HKD 720.9 million in the first half of 2023 compared to HKD 432.4 million in the same period of 2022[9]. - Distributable income rose by 9.8% to HKD 136.8 million from HKD 124.6 million year-on-year[10]. - The profit attributable to shareholders for the first half of 2023 was HKD 631.0 million, representing a 3.4% increase compared to HKD 610.4 million in the same period of 2022[23]. - Total revenue for the first half of 2023 increased by 95.6% year-on-year[26]. - Net property income for the trust group was HKD 226.0 million, an increase of 31.5% compared to the previous year[31]. - Total rental income increased by 30.2% to HKD 235.8 million, with fixed rental income remaining stable at HKD 111.6 million and variable rental income from retail stores rising by 74.8% to HKD 158.9 million[13][17]. - Total rental income (before service fees) for the first half of 2023 was HKD 271.5 million, representing a year-on-year increase of 33.3%[173]. - Net rental income (after service fees) for the first half of 2023 was HKD 235.8 million, reflecting a year-on-year growth of 30.2%[173]. - The net profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, was HKD 94.3 million, representing a 7.5% increase year-on-year[184]. - The total operating profit before global marketing expenses for the hotel portfolio reached HKD 227.0 million, up 74.7% from the previous year[183]. Hotel Operations - Average revenue per available room (RevPAR) grew by 25.9% year-on-year, with specific increases of 48.9% for The Langham and 21.6% for Cordis hotels, while Eaton Hotel saw a slight decline of 1.0%[12]. - The average daily available rooms for the hotel portfolio in the first half of 2023 was 1,630, with an occupancy rate of 86.5%, an increase of 14.1 percentage points compared to the same period last year[191]. - Restaurant revenue grew 2.1 times year-on-year in the first half of 2023, attributed to the lifting of social distancing policies[169]. - Food and beverage revenue increased by 3.2 times year-on-year, partly due to strong growth in the Tang Court restaurant, which maintained its Michelin three-star status[193]. - Average interest rate on bank borrowings increased to 4.3% in the first half of 2023, compared to 1.1% in the same period of 2022, leading to a 90.8% increase in financing costs to HKD 109.5 million[170]. Investment and Valuation - The valuation of the hotel investment portfolio rose from HKD 14,685.0 million at the end of 2022 to HKD 15,265.0 million by June 30, 2023[14]. - The fair value increase of investment properties amounted to HKD 552.2 million, offset by a decrease of HKD 15.5 million from derivative financial instruments[35]. - The total fair value of investment properties increased to HKD 552.2 million during the reporting period[184]. Debt and Financing - Financing costs increased by 90.8% to HKD 109.5 million, primarily due to a significant rise in interest expenses[19]. - The overall debt ratio improved to 40.5% from 42.0% at the end of 2022[14]. - Interest expenses rose to HKD 134.3 million, a significant increase of 291.5% year-on-year due to rising Hong Kong Interbank Offered Rate (HIBOR) since July 2022[32]. - The trust group maintained a total outstanding debt of HKD 6,317.0 million as of June 30, 2023, unchanged from December 31, 2022[42]. - The nominal total amount of interest rate swap contracts for hedging floating rate loans was HKD 3,700.0 million, covering 58.6% of the outstanding borrowings[33]. Corporate Governance - The trust group has established various corporate governance measures to address potential conflicts of interest, ensuring the interests of independent unit holders are protected[72]. - The trust and the company have complied with all applicable governance codes and best practices during the six-month period ending June 30, 2023[77]. - The trust is structured as a fixed unit investment trust, only permitted to invest in the securities and other interests of a single entity[69]. - The board of directors of the trust manager must consist of the same individuals who serve as directors of the company, ensuring alignment in governance[77]. - The trust manager has no employees and does not pay any remuneration to its directors, which simplifies governance structures[77]. - The company has implemented specific corporate governance measures to oversee the execution of the Eagle's priority contract, including annual reviews by independent non-executive directors[88]. - The company is committed to ensuring compliance with the terms of the Eagle's priority contract through internal audit functions and oversight by the audit committee[87]. Future Outlook - The company anticipates ongoing challenges from the COVID-19 pandemic, geopolitical tensions, and high interest rates affecting the recovery of the hotel industry[15]. - The group anticipates stable business volume and will continue to address challenges in the overall macro environment[28]. - The trust group is committed to sustainable development, focusing on environmental, social, and governance responsibilities[110]. Unit Holdings - As of June 30, 2023, the total number of issued units was 3,289,330,011, reflecting an increase of 15,846,932 new units, or 0.48% compared to December 31, 2022[95]. - The company holds a total of 3,289,330,011 issued units as of June 30, 2023, with 2,304,229,933 units representing 70.05% ownership by Eagle Group[124][130]. - Dr. Lo Ka Shing is the beneficial owner of 31,584,000 units (0.96%) and has control over 2,304,229,933 units (70.05%) through Eagle Group[123][130]. - The company has a significant trust interest with 254,664,393 units (34.06%) held in discretionary trust[133]. - Eagle Group's indirect holdings include 2,157,195,433 units (65.58%) through LHIL Assets Holdings Limited as of June 30, 2023[125][136]. - The total number of issued units for the Crown Industrial Trust is 5,990,682,244, with Eagle Group owning 68.78%[135][134]. - The company reported a total of 64,932,835 units (8.68%) held by Dr. Lo Ka Shing as of June 30, 2023[133]. - The company has disclosed that 775,000 units are held as stock options[126]. - The total issued shares for Eagle Group as of June 30, 2023, is 747,723,345, with a 69.96% ownership stake[127][126]. - The company has a total of 95,928,364 units (12.83%) held by controlled companies[133]. - The company’s financial disclosures indicate no other individuals hold 5% or more of the issued units apart from those listed[130].

Financial Performance - Total revenue from the hotel portfolio increased by 66.7% to HKD 720.9 million in the first half of 2023, compared to HKD 432.4 million in the same period of 2022[6]. - Distributable income for the first half of 2023 was HKD 136.8 million, a 9.8% increase from HKD 124.6 million in the same period of 2022[6]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 630,966,000, compared to HKD 610,394,000 for the same period in 2022, representing a growth of 1.9%[136]. - The pre-tax profit for the six months ended June 30, 2023, was HKD 650.9 million, compared to HKD 631.1 million for the same period in 2022[83]. - The total distributable income for the six months ended June 30, 2023, was HKD 136,792,000, an increase from HKD 124,601,000 in the previous year, reflecting a growth of 9.4%[136]. Hotel Operations - The average revenue per available room (RevPAR) increased by 25.9% year-on-year in the first half of 2023[22]. - The average occupancy rate for the overall hotel portfolio increased to 86.5% in H1 2023, up from 72.4% in H1 2022, with a 25.9% rise in average revenue per available room[49]. - The Langham Hotel in Hong Kong reported a significant increase in occupancy rate from 70.6% in H1 2022 to 84.5% in H1 2023, with an average room rate rising by 24.3% to HKD 2,044[46]. - The average daily room rate for the Hong Kong hotels was HKD 667 in the first half of 2023, with an occupancy rate of 88.4%[44]. - The average room rate for all hotels in Hong Kong reached HKD 1,299 in H1 2023, reflecting a 25.3% increase compared to H1 2022[56]. Rental Income - The total rental income (net of service fees) rose by 30.2% to HKD 235.8 million in the first half of 2023, up from HKD 181.1 million in the previous year[6]. - Fixed rental income from GE (LHIL) Lessee Limited was HKD 111.6 million, while variable rental income amounted to HKD 158.9 million in the first half of 2023[15]. - Total rental income for the Trust Group increased by 30.2% year-on-year to HKD 235.8 million in the first half of 2023, driven by a 74.8% increase in floating rental income[28]. Financial Position - The total value of the hotel portfolio increased to HKD 15,265.0 million as of June 30, 2023, from HKD 14,685.0 million at the end of December 2022[14]. - The debt ratio decreased to 40.5% as of June 30, 2023, down from 42.0% at the end of December 2022[14]. - As of June 30, 2023, the total assets of the trust group amounted to HKD 15,593.8 million, an increase from HKD 15,022.6 million as of December 31, 2022[65]. - The debt-to-asset ratio was 40.5% as of June 30, 2023, down from 42.0% as of December 31, 2022[65]. - The cash balance stood at HKD 246.6 million as of June 30, 2023, slightly up from HKD 245.1 million as of December 31, 2022[67]. Interest and Financing Costs - The average borrowing interest rate for the Trust Group Bank increased to 4.3% in the first half of 2023, compared to 1.1% in the same period of 2022, leading to a 90.8% year-on-year increase in financing costs to HKD 109.5 million[25]. - Interest expenses surged to HKD 134.3 million in the first half of 2023, marking a 291.5% increase year-on-year due to rising interbank rates[37]. - The financing costs for the six months ended June 30, 2023, amounted to HKD 109,495,000, significantly higher than HKD 57,418,000 in the same period of 2022[128]. Strategic Planning and Future Outlook - The company anticipates significant improvement in hotel performance in the second half of 2023 compared to the same period in 2022, as the latter was influenced by special operational circumstances[86]. - The Trust Group plans to continue its hedging strategy to mitigate the impact of potential interest rate hikes on distributable income[25]. - The company continues to focus on property investment as its primary business activity, maintaining consistency in accounting policies from the previous fiscal year[92]. Changes in Assets and Liabilities - The total number of overnight visitors to Hong Kong in H1 2023 was 6.6 million, significantly lower than the 14.9 million in 2019, indicating ongoing recovery challenges[58]. - Total receivables from tenants amounted to HKD 28,218,000 as of June 30, 2023, significantly up from HKD 9,211,000 as of December 31, 2022, reflecting a substantial increase in receivables[146]. - Trade payables increased to HKD 30,890,000 as of June 30, 2023, compared to HKD 17,446,000 as of December 31, 2022, indicating a rise in liabilities[147]. Compliance and Reporting Standards - The company has applied new and revised Hong Kong Financial Reporting Standards, which may impact the financial statements moving forward[95]. - The group will apply the revised Hong Kong Financial Reporting Standards for the annual consolidated financial statements for the year ending December 31, 2023[117]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, with no significant impact from the revised standards adopted during the interim period[167].

Business Overview - Langham Hospitality Investments focuses on owning and investing in a hotel portfolio, primarily targeting completed hotels in Asia[8]. - The hotel portfolio includes high-end hotels classified as Grade A and Grade B by the Hong Kong Tourism Board, with the Langham Hotel and Cordis Hotel being Grade A[8]. - Langham Hospitality Group currently manages 26 hotels under the Langham, Cordis, and Eaton brands[32]. - The group has over 15 confirmed and in-development hotel projects across China, Southeast Asia, Australia, and North America[32]. - The Cordis brand focuses on high-end hotels and aims to expand in major cities in Asia and North America[41]. - The Eaton Workshop brand combines hospitality with cultural and social initiatives, providing platforms for artists and activists[44]. - The company is part of the Eagle Group, which includes a diverse range of hotel brands across four continents[32]. Financial Performance - The hotel portfolio's total revenue for 2022 increased by 28.9% year-on-year, including HKD 24.0 million in government subsidies[99]. - Operating profit before global marketing expenses reached HKD 212.7 million, representing a growth of 5.8 times[99]. - Net profit, excluding non-cash fair value changes from investment properties and derivative financial instruments, was HKD 118.1 million, an increase of 76.8% compared to the previous year[101]. - The total distributable income for the year ended December 31, 2022, was HKD 190.5 million, with a proposed distribution of HKD 95.3 million, reflecting a 7.4% increase from 2021[101]. - The valuation of the hotel portfolio increased from HKD 14,407.0 million at the end of 2021 to HKD 14,685.0 million at the end of 2022[101]. - The net asset value of the trust group as of December 31, 2022, was HKD 8,161.0 million, or HKD 2.49 per unit[101]. - The debt ratio decreased to 42.0% at the end of 2022 from 43.2% at the end of 2021[101]. - Financing costs increased by 25.6% year-on-year to HKD 145.1 million due to rising interest rates[100]. - The company proposed a final distribution of HKD 0.029 per unit for the year ended December 31, 2022, an increase from HKD 0.027 in 2021, resulting in a distribution yield of 2.6% based on the closing price of HKD 1.11 per unit as of December 31, 2022[95]. Corporate Governance - The company aims to maintain high standards of corporate governance to enhance its image and create value for shareholders[23]. - The company’s board of directors includes independent non-executive directors, ensuring corporate governance compliance[80]. - The company’s independent non-executive directors have extensive experience in finance and investment banking, enhancing corporate governance[197]. - The company’s independent non-executive directors include members with backgrounds in private equity and venture capital, indicating a strong strategic direction[197]. Sustainability and CSR - The company is committed to sustainable development through its CSR program, CONNECT, focusing on environmental, community, employee, and governance aspects[177]. - Energy consumption per square meter decreased to 1,097 MJ in 2022, down from 1,489 MJ in 2021[181]. - Waste sent to landfills per occupied room night was 2.6 liters in 2022, compared to 2.4 liters in 2021[181]. - All hotels achieved Platinum level in EarthCheck certification[181]. Market Strategy and Future Outlook - The company aims to enhance its market presence through strategic partnerships and expansions in key regions[177]. - Future outlook includes continued investment in new technologies and product offerings to improve guest experiences[177]. - The company is actively pursuing opportunities for mergers and acquisitions to strengthen its market position[177]. - The group continues to explore new market opportunities and strategic expansions to enhance its global footprint[64]. Operational Highlights - The average occupancy rate for premium hotels in Hong Kong increased to 55.9%, up 10.6 percentage points from 45.3% in 2021[138]. - The average revenue per available room (RevPAR) for premium hotels increased by 46.4% to HKD 786, compared to HKD 537 in the previous year[138]. - The hotel achieved an occupancy rate of 66.4% in 2022, up from 36.0% in 2021, with average room rates increasing by 43.4% year-on-year, leading to a 165.1% increase in room revenue[159]. - The total revenue for the hotel portfolio in 2022 was HKD 970.6 million, reflecting a year-on-year growth of 28.9%[157]. Challenges and Responses - The hotel industry faced significant challenges in the first half of 2022 due to COVID-19 restrictions, but business improved slightly in the second half[121]. - The company participated in government community isolation facilities and quarantine hotel programs during the pandemic[122]. - The company confirmed that it can meet its obligations following the proposed distribution, as verified by the auditors[95].

Financial Performance - Hotel portfolio revenue for the first half of 2022 was HKD 432.4 million, representing a 50.4% increase compared to HKD 287.5 million in the same period of 2021[21]. - Total rental income after service fees for the trust group was HKD 181.1 million, up 74.6% from HKD 103.7 million year-on-year[21]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, surged 340.7% to HKD 87.7 million from HKD 19.9 million[21]. - Distributable income for the first half of 2022 reached HKD 124.6 million, a 246.1% increase from HKD 36.0 million in the previous year[21]. - In the first half of 2022, the hotel group's total revenue increased by 50.4% year-on-year, with a real increase of 46.7% after excluding government subsidies of HKD 12.2 million[27]. - The net property income of the trust group rose by 85.8% year-on-year to HKD 171.9 million[27]. - The fair value gain from investment properties was HKD 444.1 million, contributing to a net profit of HKD 610.4 million for the period[28]. - Total revenue for the Hong Kong Langham Hotel was HKD 133.8 million, with room revenue contributing HKD 104.5 million, reflecting a year-on-year increase of 58.7%[57]. - The total revenue for the Hong Kong Eaton Hotel was HKD 137.2 million, with room revenue increasing by 305.1% year-on-year[63]. Asset and Liability Management - The total value of the hotel portfolio as of June 30, 2022, was HKD 14,887 million, compared to HKD 14,407 million at the end of 2021[23]. - Net asset value per unit increased to HKD 2.56 as of June 30, 2022, from HKD 2.41 at the end of 2021[23]. - The debt ratio improved to 41.7% as of June 30, 2022, down from 43.2% at the end of 2021[23]. - The trust group's net asset value was HKD 8,335.3 million, or HKD 2.56 per unit, with a debt ratio of 41.7%[31]. - As of June 30, 2022, the total outstanding borrowings of the trust group amounted to HKD 6,317.0 million, unchanged from December 31, 2021[71]. - The trust group has a cash balance of HKD 139.0 million as of June 30, 2022, down from HKD 179.2 million on December 31, 2021, to meet operational needs[76]. - The asset-liability ratio is 41.7% as of June 30, 2022, compared to 43.2% on December 31, 2021[75]. - The total assets of the trust group increased to HKD 15,148.9 million as of June 30, 2022, from HKD 14,612.6 million on December 31, 2021[75]. Operational Performance - Hotel occupancy rates and room prices increased compared to the first half of 2021, with room revenue growing 3.4 times year-on-year[26]. - Average daily room availability for the hotel portfolio was 1,631 rooms in the first half of 2022, with an occupancy rate of 72.4%, up 45.1 percentage points from 27.3% in the previous year[53]. - The average room rate for the hotel portfolio increased by 66.3% to HKD 1,422 in the first half of 2022, compared to HKD 855 in the same period of 2021[53]. - The restaurant revenue for the hotel operations dropped by 48.1% year-on-year due to the impact of the COVID-19 pandemic[27]. - The occupancy rate for Grade A luxury hotels in Hong Kong reached 54.0% in the first half of 2022, up 18.0 percentage points from 36.0% in the same period of 2021[56]. - The overall hotel occupancy rate in Hong Kong was 63.0%, an increase of 7.0 percentage points from 56.0% in the first half of 2021[56]. Distribution Policy - The trust group's current distribution policy is to distribute no less than 90% of the total distributable income to unit holders[18]. - No interim distribution was declared for the first half of 2022, consistent with the previous year[19]. - The trust group decided not to distribute any of the distributable income for the six months ended June 30, 2022, due to the ongoing impact of the COVID-19 pandemic on hotel operations[65]. Corporate Governance - The board emphasized the importance of maintaining high corporate governance standards to mitigate risks and enhance shareholder value[101]. - The company plans to implement new policies to further strengthen compliance and regulatory frameworks[101]. - The trust group has established multiple corporate governance measures to address potential conflicts of interest, ensuring the interests of independent unit holders are protected[111]. - The audit committee is responsible for overseeing the implementation of corporate governance measures related to the Eagle priority right agreement[112]. - The independent non-executive directors review the compliance with the Eagle priority right agreement annually and disclose the results in the annual report[111]. Future Outlook - The company expects continued challenges in the second half of 2022 due to ongoing COVID-19 impacts and geopolitical tensions affecting economic recovery[32]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $625 million[90]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[90]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next year[90]. Employee and Social Responsibility - The total number of employees in the hotels remained stable compared to December 31, 2021, with competitive salary levels and performance-based bonuses[158]. - Each employee received an average of approximately 26.2 hours of training in the first half of 2022[159]. - The trust's corporate social responsibility program, CONNECT, focuses on governance, environmental protection, community, and employee welfare[159].

Hotel Portfolio and Management - The Langham Hospitality Investments focuses on owning and investing in a portfolio of hotels, primarily in Asia, with a current portfolio including The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[4]. - The Langham Hong Kong has 498 rooms and is rated as a premium hotel by the Hong Kong Tourism Board, located in a prime shopping and cultural area[7]. - Cordis Hong Kong features 669 rooms and is also rated as a premium hotel, situated near popular markets and public transport, enhancing its appeal to both local and international guests[9]. - Eaton HK, rated as a high-end hotel, has 465 rooms and underwent significant renovations in 2018 to cater to the millennial traveler, focusing on cultural and community themes[14]. - The group is managed by Langham Hospitality Group, which operates 26 hotels across four continents, with over 15 projects in various stages of development in China, Southeast Asia, Australia, and North America[29]. - The company has a total of 26 hotel properties, with three currently owned in Hong Kong[35]. - The company is managed by Langham Hospitality Investments Limited, which acts as the trustee-manager[39]. - The company’s main operating location is in Wan Chai, Hong Kong[42]. - The company’s shares are listed on the Hong Kong Stock Exchange under the stock code 1270[42]. Financial Performance - Hotel portfolio revenue increased by 28.1% to HKD 753.1 million in 2021 from HKD 587.9 million in 2020[54]. - Trust group's total rental income after service fees rose by 7.7% to HKD 224.3 million, compared to HKD 208.3 million in the previous year[54]. - Distributable income surged by 1541.7% to HKD 98.5 million, up from HKD 6.0 million in 2020[54]. - Net profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, increased by 432.3% to HKD 66.8 million from a loss of HKD 20.1 million in 2020[54]. - Average revenue per available room (RevPAR) increased by 38.8% for the full year, significantly higher than the 6.4% increase in the first half of 2021[58]. - Total revenue from food and beverage operations grew by 51.4% year-on-year, with a 20.9% increase in the first half of 2021[61]. - The total value of the hotel portfolio was HKD 14,407 million as of December 31, 2021, down from HKD 14,802 million at the end of 2020[63]. - The net asset value per unit was HKD 2.41 as of December 31, 2021, compared to HKD 2.52 a year earlier[63]. - The trust group recorded a loss attributable to unitholders of HKD 346.6 million in 2021, a decrease of 87.8% from a loss of HKD 2,832.8 million in 2020[89]. Dividend Policy - The company reported a final dividend of HKD 0.027 per unit for the year ended December 31, 2021, resulting in a dividend yield of 3.2% based on the closing price of HKD 0.84 per unit on December 31, 2021[46]. - The trust group's policy is to distribute not less than 90% of its distributable income to unit holders, with a distribution rate of 90% for the year 2020[46]. - The company did not declare an interim dividend for the six months ended June 30, 2021, similar to 2020[46]. - The company has scheduled its annual general meeting for May 12, 2022, to approve the proposed final dividend[43]. - The trust group's policy is to distribute at least 90% of the total distributable income, resulting in a distribution of HKD 88.7 million for 2021, with a per unit distribution of HKD 0.027[102]. Strategic Focus and Future Outlook - The company aims to expand its presence in major cities in Asia and North America through new hotel openings and transformations[30]. - The strategic focus includes enhancing guest experiences and expanding market reach through targeted renovations and new developments[30]. - The company is positioned to capitalize on the growing demand for luxury accommodations in key urban markets[30]. - Future outlook includes plans to expand into new markets, targeting a 15% increase in market share over the next two years[130]. - The company is investing in new product development, with a budget allocation of $50 million for technology upgrades in hotel management systems[130]. - The company has identified potential acquisition targets in the Asia-Pacific region to enhance its portfolio, aiming for a 10% increase in asset value through strategic acquisitions[130]. Sustainability Initiatives - The management team emphasizes a commitment to sustainability, with plans to reduce carbon emissions by 30% by 2025[130]. - The company aims to achieve net-zero emissions by 2045 as part of its climate leadership strategy[152]. - The company has identified eight implementation pathways to drive impact and has set clear directions and objectives for each pathway[152]. - The company emphasizes the importance of sustainable dining options, promoting plant-based menu choices to contribute significantly to environmental efforts[152]. - The company’s environmental, social, and governance (ESG) report adheres to the Hong Kong Stock Exchange's guidelines, covering all properties under its comprehensive operations[155]. - The company’s sustainability initiatives are closely linked to its hotel operations through its corporate social responsibility program, CONNECT[156]. - The company focuses on energy and water conservation, waste management, and addressing climate change as part of its environmental efforts[157]. - The company has signed a 4-year sustainable development-linked loan agreement totaling HKD 7.5 billion with 11 banks across the UK, China, Hong Kong, Japan, and Singapore, marking the first such loan in the Asian hotel industry[165]. Community Engagement - The hotels are actively involved in community service, supporting those affected by the COVID-19 pandemic in Hong Kong[198]. - The Hong Kong Langham Hotel provided 125 pink afternoon teas to healthcare workers at six COVID-19 community testing centers on International Day of Happiness[199]. - The hotel collaborated with Sister Bento to create the Giftntake project, facilitating the donation of non-perishable items to low-income single mothers and children in Jordan and Sham Shui Po[200]. - The Hong Kong Cordis Hotel donated 100 nutritious meal boxes weekly to the homeless in collaboration with the Yau Ma Tei Gospel Hall, sharing warmth and meals with local residents during the pandemic[200].

Financial Performance - Hotel portfolio revenue for the first half of 2021 was HKD 287.5 million, an increase of 10.7% compared to HKD 259.7 million in the same period of 2020[11]. - Total rental income for the trust group decreased by 1.1% to HKD 103.7 million from HKD 104.9 million year-on-year[11]. - Profit attributable to unit holders, excluding fair value changes of investment properties and derivative financial instruments, was HKD 19.9 million, a significant increase of 250.8% from a loss of HKD 13.2 million in the previous year[11]. - The average revenue per available room (RevPAR) increased by 6.4% in the first half of 2021, reflecting a recovery in hotel occupancy rates despite ongoing travel restrictions[14]. - Food and beverage revenue grew by 20.9% year-on-year, driven by the easing of social distancing measures and increased local dining demand[14]. - The total revenue for the hotel segment was HKD 287.5 million, with a year-on-year increase of 10.7%[43]. - The net profit excluding fair value changes of investment properties and derivative financial instruments increased by 250.8% to HKD 19.9 million compared to a loss of HKD 13.2 million in the previous year[34]. - The company reported a significant increase in interest income by 28.6% to HKD 0.9 million in the first half of 2021, compared to HKD 0.7 million in the same period of 2020[34]. - The total revenue for the period was HKD 103,662,000, down from HKD 104,883,000 in 2020, indicating a decrease of approximately 1.2%[162]. - The group reported a total revenue of HKD 112,537,000, down from HKD 103,662,000, reflecting the impact of the pandemic on hotel operations[192]. Asset Valuation and Financial Position - The total value of the hotel portfolio as of June 30, 2021, was HKD 14,270 million, down from HKD 14,802 million at the end of 2020[11]. - The net asset value per unit decreased to HKD 2.36 from HKD 2.52 in the previous year[11]. - The fair value of investment properties decreased by HKD 553.7 million, resulting in a net loss after tax of HKD 509.5 million for the first half of 2021[22]. - The fair value decrease of investment properties was HKD 553,741,000, a notable reduction from HKD 1,941,616,000 in 2020, indicating a decrease of about 71.5%[162]. - The total assets as of June 30, 2021, were reported at HKD 6,000,000,000, compared to HKD 6,500,000,000 as of December 31, 2020, indicating a decrease of about 7.7%[164]. - The company reported a total equity of HKD 2,500,000,000 as of June 30, 2021, down from HKD 3,000,000,000 at the end of 2020, reflecting a decline of approximately 16.7%[164]. - The total equity decreased from HKD 8,129,597,000 to HKD 7,629,339,000, a decline of approximately 6.1%[165]. - The total rental income from the main lessee was HKD 111,575,000, a slight decrease from HKD 111,885,000 in the same period last year[185]. Debt and Financing - The debt ratio increased to 44.1% from 42.6% year-on-year, indicating a slight rise in leverage[11]. - Financing costs decreased by 35.2% to HKD 60.0 million, driven by lower interest rates and a reduction in outstanding loans[28]. - The total financing costs decreased by 35.2% to HKD 60.0 million in the first half of 2021, compared to HKD 92.6 million in the same period of 2020[30]. - The company incurred interest payments of HKD 56,744,000, compared to HKD 89,663,000 in the previous period, a reduction of about 36.8%[171]. - The trust group's total assets were HKD 14,561.6 million as of June 30, 2021, compared to HKD 15,079.6 million as of December 31, 2020[56]. Operational Performance - The average occupancy rate for the hotel portfolio increased to 27.3% in the first half of 2021, up from 21.0% in the same period of 2020, representing a growth of 6.3 percentage points[39]. - The average room rate for the hotel portfolio decreased by 18.0% to HKD 855 in the first half of 2021, compared to HKD 1,043 in the previous year[39]. - The occupancy rate of The Langham, Hong Kong reached 20.6% in the first half of 2021, while the average room rate decreased by 23.7%[44]. - The occupancy rate of Eaton Hong Kong was 35.9% in the first half of 2021, with an average room rate decline of 10.6% year-on-year[48]. - The total outstanding borrowings of the trust group as of June 30, 2021, remained at HKD 6,417.0 million, unchanged from December 31, 2020[54]. Corporate Governance - The trust structure of Langham Hospitality Investments is governed by a trust deed established on May 8, 2013, under Hong Kong law, allowing investment solely in the securities and interests of the company[78]. - The company has established multiple corporate governance measures to address potential conflicts of interest, ensuring the protection of independent unit holders' interests[82]. - As of June 30, 2021, the trust and the company have complied with all applicable code provisions and have adopted some of the best practices outlined in the corporate governance code[83]. - The company is committed to maintaining high standards of corporate governance to enhance its image and create value for unit holders while minimizing fraud risk[77]. - The company has established a risk management and internal control system to provide reasonable assurance against material misstatements or losses[102]. - The audit committee is responsible for overseeing the execution of governance measures related to the Eagle priority agreements, ensuring compliance with their terms[88]. Community and Sustainability - The hotel management has established a corporate social responsibility plan called CONNECT, focusing on governance, environmental protection, community, and employee welfare[133]. - All three hotels have received EarthCheck Platinum certification, and the Hong Kong hotel has also obtained ISO 14001 certification[133]. - In the first half of 2021, hotel staff participated in approximately 327 hours of community service and volunteer activities[133]. - Each employee received an average of 12.1 hours of occupational health and safety training in the first half of 2021[133]. - The hotels have been recognized as "Caring Company" for over ten years, collaborating with local community partners through various initiatives[133].

Hotel Portfolio and Operations - The Langham Hospitality Investments focuses on owning and investing in a portfolio of hotels, primarily in Asia, including The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[4]. - The Langham Hong Kong is a luxury hotel with 498 rooms and a building area of 375,000 square feet, classified as a premium hotel[7]. - Cordis Hong Kong features 669 rooms and a building area of 580,000 square feet, also classified as a premium hotel, located in the bustling Mong Kok area[10]. - Eaton HK, located between Tsim Sha Tsui and Mong Kok, has 465 rooms and underwent significant renovations in 2018 to enhance its cultural and community-focused theme[12]. - The group currently manages 23 hotels under The Langham, Cordis, and Eaton brands across four continents, with over 15 projects confirmed or under development in China, Southeast Asia, Australia, and North America[13]. - The hotels are strategically located near major commercial and leisure hubs, enhancing their appeal to both local and international guests[6]. - The company aims to expand its portfolio with new hotel projects and renovations to meet the evolving demands of travelers[15]. - The Langham brand emphasizes luxury and elegance, while the Cordis brand focuses on high-end service and community engagement[14][15]. - The hospitality group is committed to providing unique experiences and exceptional service to guests, positioning itself as a leader in the luxury hotel market[14]. - The company is exploring opportunities for market expansion and potential acquisitions to strengthen its presence in key regions[13]. Financial Performance - Hotel portfolio revenue decreased by 56.5% to HKD 587.9 million in 2020 from HKD 1,350.9 million in 2019[36]. - Total rental income after service fees dropped by 57.0% to HKD 208.3 million in 2020 compared to HKD 483.9 million in 2019[36]. - The company reported a loss attributable to unit holders of HKD 20.1 million, a decline of 111.9% from a profit of HKD 168.6 million in 2019[36]. - Distributable income fell by 97.7% to HKD 6.0 million in 2020 from HKD 259.1 million in 2019[36]. - The company did not declare any interim or final distributions for 2020, compared to 8.7 HKD cents and 3.4 HKD cents in 2019 respectively[36]. - Total value of the hotel portfolio as of December 31, 2020, was HKD 14,802 million, down from HKD 15,572 million in June 2020 and HKD 17,500 million in December 2019[36]. - Net asset value per unit decreased to HKD 2.52 as of December 31, 2020, from HKD 3.68 in June 2020 and HKD 4.68 in December 2019[36]. - Debt ratio improved to 42.6% in December 2020 from 46.2% in June 2020, but increased from 40.6% in December 2019[36]. - The board decided to reduce the distribution rate from 100% to at least 90% of distributable income starting in 2020 to enhance cash reserves[31]. - The ongoing COVID-19 pandemic significantly impacted hotel operations, leading to the recommendation of no final distribution for the year[32]. - The hotel portfolio recorded an operating loss of HKD 13.2 million in 2020, compared to an operating profit of HKD 464.9 million in the previous year[39]. Impact of COVID-19 - The average occupancy rate for the hotel portfolio dropped to 24.8% in 2020 from 73.3% in 2019, a decline of 48.5 percentage points[66]. - The average room rate for the hotel portfolio decreased by 39.9% to HKD 933 in 2020 from HKD 1,553 in 2019[66]. - The total revenue for the hotel portfolio was HKD 587.9 million, down from HKD 1,000 million in 2019[66]. - The average revenue per available room and food and beverage business continued to suffer significant impacts as of January 2021[45]. - The company is focusing on developing the local staycation and long-stay market due to the lack of travelers, while also launching various promotional activities for its local dining business[45]. Sustainability Initiatives - The company aims to halve its environmental impact and strengthen social connections in a rapidly changing world, as outlined in its 2030 sustainability vision[112][113]. - The company has completed a comprehensive materiality assessment, including benchmarking and internal surveys, to align its CONNECT strategy with stakeholder expectations[110]. - The company is committed to achieving specific sustainability goals, which will result in lower interest rates on its sustainable development-linked loans if met[115]. - The company has established a governance structure to oversee its environmental, social, and governance (ESG) strategies and reporting, with the board responsible for monitoring sustainability trends[107]. - The company emphasizes energy and water conservation, waste management, and addressing climate change as part of its environmental initiatives[106]. - The company achieved EarthCheck Platinum certification for all three hotels, recognizing over ten years of sustainability efforts[120]. - The hotels implemented waste reduction measures, including recycling and reusing various materials, which contributed to sustainability efforts[126]. - The partnership with ecoSPIRITS allowed the hotels to reduce the carbon footprint of spirits packaging by 80% and cut down 95% of cardboard and glass waste[126]. - The total electricity consumption of the hotels was 124,300 GJ, a decrease of 15% compared to 2019 (146,484 GJ)[125]. - The total gas/fuel consumption in 2020 was 34,457 GJ, down 22% from 2019 (44,078 GJ)[125]. - The total greenhouse gas emissions (Scope 1 and Scope 2) for 2020 were 19,082 tons of CO2 equivalent, a reduction of 16% from 2019 (22,785 tons)[125]. - Total water consumption decreased by 30% to 311,444 cubic meters compared to 2019's 445,347 cubic meters, primarily due to social distancing measures and lower hotel occupancy rates[132]. Employee Engagement and Safety - The company has a strong focus on employee safety, equal opportunities, and career advancement within the hotel industry[106]. - The company has implemented a human resources policy emphasizing employee ethics and engagement, supported by training programs and performance assessments[150]. - The employee composition was 55% female and 45% male, with 97% being long-term employees[156][160]. - The company organized a global fitness challenge to promote employee well-being during the COVID-19 pandemic[154]. - The company provided necessary personal protective equipment, including medical masks and hand sanitizers, to ensure employee safety[154]. - The key performance indicators (KPIs) related to health and safety showed a slight deterioration, with the Lost Time Injury Frequency Rate (LTIFR) increasing from 21 in 2019 to 26 in 2020, and the accident rate rising from 6.3 to 8.1[166][167]. - In 2020, the average training hours per employee decreased to 16 hours from 26 hours in 2019 due to the introduction of more flexible learning methods[173]. Community Engagement - Over 2,300 meals were donated through the "Delicious Sharing" program in the first three months, with 3,100 hot meals provided to those in need[139]. - Employees contributed over 603 hours to charitable and social activities in 2020, earning recognition for their community care efforts over the past decade[148]. - The hotels engaged in community support by donating meals and essential supplies to vulnerable groups affected by the COVID-19 pandemic[140][141]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance its image and create value for shareholders[198]. - The trust group structure is simplified and outlined in the provided diagram[199]. - The company holds 100% beneficial interest in ordinary shares and 100% in preferred shares, indicating full ownership[200].

Financial Performance - Hotel portfolio revenue for the first half of 2020 was HKD 259.7 million, a decrease of 67.9% compared to HKD 810.2 million in the same period of 2019[14]. - Total rental income for the trust group decreased by 64.5% to HKD 104.9 million from HKD 295.5 million year-on-year[14]. - The total revenue, including HKD 14.3 million in government subsidies, fell by 68.0% year-on-year[17]. - The net loss after tax for the first half of 2020 was HKD 2,037.1 million, with a net loss of HKD 13.2 million excluding fair value changes of investment properties and derivative financial instruments[18]. - The net loss attributable to shareholders was HKD 2,037.1 million in the first half of 2020, a drastic decline of 5,532.3% from a profit of HKD 37.5 million in the previous year[46]. - The total comprehensive loss attributable to unit holders was HKD 2,037,076,000, compared to a profit of HKD 37,542,000 in the prior period[165]. - The basic and diluted loss per unit was HKD 0.95, a sharp decline from HKD 0.02 in the same period last year[165]. - The loss before tax for the period was HKD 2,033,090,000, compared to a profit of HKD 71,820,000 in the previous year, indicating a significant downturn[165]. Asset Valuation - The fair value of investment properties decreased by HKD 1,941.6 million during the reporting period[18]. - The fair value of investment properties was HKD 15,572 million as of June 30, 2020, compared to HKD 17,500 million as of December 31, 2019[65]. - The fair value loss on investment properties was HKD 1,941,616,000 for the period, compared to HKD 74,951,000 in the previous year, highlighting a significant impact on asset valuation[165]. - The fair value of investment properties as of June 30, 2020, for The Langham, Hong Kong was HKD 5,645,000,000, down from HKD 6,475,000,000 as of December 31, 2019, indicating a decrease of 12.85%[193]. Debt and Liabilities - The debt ratio increased to 46.2% from 40.6% at the end of 2019[14]. - Total outstanding borrowings amounted to HKD 7,227 million, resulting in a debt ratio of 46.2% as of June 30, 2020[19]. - The total liabilities increased to HKD 7,218,807,000 from HKD 7,158,505,000, indicating a slight increase of 0.8%[168]. - The asset-to-liability ratio increased to 46.2% as of June 30, 2020, compared to 40.6% as of December 31, 2019[63]. Revenue from Hotels - The average revenue per available room (RevPAR) for the hotel portfolio dropped by 85.7% due to a 91.2% decline in guest numbers and a 69.8 percentage point decrease in occupancy rate[17]. - Average revenue per available room (RevPAR) for Hong Kong Langham Hotel, Hong Kong Cordis Hotel, and Hong Kong Eaton Hotel fell by 93.5%, 81.9%, and 76.4% respectively in July 2020 compared to the previous year[27]. - The total revenue for Hong Kong Langham Hotel in H1 2020 was HKD 75.2 million, reflecting a year-on-year decline of 74.8%[52]. - The total revenue for Hong Kong Cordis Hotel in H1 2020 was HKD 107.0 million, reflecting a year-on-year decline of 70.6%[52]. - The total revenue for Hong Kong Eaton Hotel in H1 2020 was HKD 77.5 million, reflecting a year-on-year decline of 47.6%[52]. Fundraising and Financial Strategy - The company anticipates that the fundraising plan will raise at least HKD 648 million, potentially up to HKD 1,019 million if all unit holders participate[23]. - The fundraising proceeds will primarily be used to repay part of the outstanding loans and to deposit additional collateral as part of the financial covenant relief mechanism[23]. - The company expects the fundraising to strengthen its financial position and ensure continued operations without breaching financial covenants[24]. - The company is exploring feasible options to improve its financial situation, including hiring financial advisors for strategic planning[22]. Corporate Governance - The trust and the company have maintained compliance with applicable corporate governance codes and regulations during the six-month period ending June 30, 2020[89]. - The group has established multiple corporate governance measures to address potential conflicts of interest, ensuring the interests of unit holders are protected[88]. - The audit committee is responsible for overseeing the execution of governance measures related to the Eagle priority agreements, ensuring compliance with their terms[94]. - The remuneration committee has a formal and transparent process for determining the remuneration of executive directors and senior management, ensuring competitive yet reasonable compensation[100]. Employee and Community Engagement - The average training hours per employee in the first half of 2020 was approximately 9.5 hours, emphasizing the company's commitment to employee development[137]. - The company has established a corporate social responsibility program, CONNECT, focusing on governance, environmental protection, community engagement, and employee welfare[137]. Market Outlook - The outlook for the international travel and tourism industry remains bleak, with expectations of a slow recovery for the hotel sector post-pandemic[24]. - The group experienced a significant decline in operational performance due to the COVID-19 pandemic, impacting the overall gross profit from the hotels[182].